Gold is poised to perform more strongly than oil while inflation surges and emphasizes the importance of the precious metal as an investment haven, according to an analyst at a prominent investment house interviewed by Bloomberg.
"We see potential for gold to outperform oil over the coming months," according to Stefan Graber, a Zurich-based analyst with Credit Suisse. "We think an ounce of gold could potentially buy a few additional barrels of oil. This assessment is based on our positive view on gold versus a neutral view on the oil market."
While gold trades close to its record high, one ounce of bullion these days will purchase 15 barrels of oil, according to the Chart of the Day. By contrast, two years ago one ounce would have purchased 26 barrels of oil.
Shortly after 5 p.m., gold futures were up 0.76 percent, a $10.70 increase to $1,411.80. Brent crude oil futures were up 6.08 percent, a $6.43 rise to $112.21 per barrel.
"Oil markets are now pricing in a considerable risk premium," he said. "If the situation eases, the risk premium could fade and prices drop again considering the still comfortable supply situation."
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